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GM 'no early push to Chapter 11'
22 May 2009
The Obama administration will not push General Motors in bankruptcy protection before the agreed 1 June restructuring deadline, it has been reported.
Contrary to recent reports in the Washington Post suggesting that the US government would push GM into bankruptcy proceedings as early as next week, the Reuters news agency has reported that the Obama administration will give GM the full length of time to work on its restructuring plan.
“GM faces a number of hurdles and it may well be that a court process is necessary to effectuate the restructuring, but the administration is committed to standing by the restructuring process whether or not that occurs,” an unnamed government source told Reuters.
GM is still widely expected to file for bankruptcy on 1 June, however, at which point its assets will be sold to a new state-owned company while court proceedings take place.
Matt Rigby
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